Heterogeneity among barterers and vendors in the informal economy

This research explored the nature of suppliers who participate in informal markets. The study was based on a national probability sample of 1,600 households. Those that had engaged in both barterer and vendor behaviors were found to have the most distinct profile. The barterer/vendor group demonstrated the highest level of expenditures with informal suppliers (suppliers operating in an off-the-books fashion). They were also found to be the youngest and to have the highest level of income and education. The strong relationship between acting as an informal supplier, as both a vendor and a barterer, and the propensity to consume in informal markets is the most striking conclusion of the study.